3 Cathie Wood Internet Stocks To Buy Now

Facebook Application Icon

Cathie Wood is betting on technology companies with disruptive innovations that are expected to kick start the fourth industrial revolution globally. Given the market’s current high volatility, Wood has hedged a portion of her portfolio through investments in large-cap tech stocks with impressive performance histories, namely Facebook, Inc. (FB), Netflix, Inc. (NFLX), and Baidu Inc. (BIDU).

Cathie Wood has been betting on the evolution of technology since 2014 through her flagship Ark Next Generation Internet ETF (ARKW). At least 80% of the fund’s assets are invested in companies that have direct exposure to cloud computing, e-commerce, artificial intelligence and blockchain technology. The actively managed ETF was one of the most profitable Ark ETFs in 2020. The ETF gained 183.3% over the past year. As one of the most profitable investors this century, Wood places great substantial importance on to large-cap companies with immense market reach.

While these companies tend to grow at a slower pace versus their compared to small- and mid-cap counterparts, the blue-chip technology companies tend to be market movers based on their disruptive innovations.

With the internet and technology impacting most industries, companies in this space have outperformed  large-cap companies in general over the past year. This is evidenced by  the Nasdaq Composite’s 63.7% gains over the past year compared to S&P 500’s 48.8% returns over this period. Technology (or internet) giants Facebook, Inc., Netflix, Inc., and Baidu Inc. are among  Wood’s top picks to capitalize on the impending technology revolution. We think their solid fundamentals and industry tailwinds make these stocks good bets for individual investors also.

Facebook, Inc. 

As the world’s biggest social media platform, FB is known for its aggressive acquisition strategies and is the owner of some of the most popular communication and media platforms. Wood owns 310,465 shares of FB, which translates  to a 0.21% weighting . Wood has been consolidating her holdings in the stock to Ark Fintech Innovation ETF (ARKW). She recently closed her position in the stock in Ark Next Generation Internet ETF (ARKF). Wood  has a marginal stake of 0.01% in FB.

FB’s revenues have increased 48% year-over-year to $26.17 billion in the first quarter, ended March 31, 2021. This can be attributed to a 46% rise in advertising revenues, and a 148% rise in revenues generated from its  “Other” segment. The company’s quarterly income from operations was $11.38 billion, up 93% from the prior year quarter. Its net income rose 94% from the same period last year to $9.50 billion, while its EPS improved 93% from the year-ago value to $3.30.

1 2 3 4
View single page >> |

Disclaimer: Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use, please ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.
Dick Kaplan 1 week ago Member's comment

Did you not see that she sold the bulk of her $BIDU holdings today? This is poorly timed advice.